10 People, Mostly from South Carolina, Face Mail and Wire Fraud Charges for Nationwide Lottery Scam

Nine residents of Little River, South Carolina, and one Georgia resident, have been arrested and charged with mail fraud and wire fraud for a lottery scam that targeted the elderly.

The federal complaint, unsealed on Tuesday, February 4th, alleged that the lottery scam targeted elderly victims across the United States. The scam notified victims that they had “won” a lottery or sweepstakes that they did not enter, but they needed to pay some fees in advance in order to collect their winnings. The complaint alleged that the lottery scam had more than 200 victims, who paid more than $1 million in order to receive their fake winnings or prizes.

Each of the suspects faces up to 20 years in prison and a $250,000 fine for the federal wire fraud and mail fraud charges.

The lottery scam was investigated as a joint effort between special agents from Homeland Security Investigations and the United States Postal Inspection Service.

“These individuals stand accused of preying on some of the most vulnerable members in our communities in their callous quest for money,” said Brock D. Nicholson, Special Agent in Charge of HSI Atlanta. “We will continue to work with our partners at the U.S. Postal Inspection Service and the U.S. Attorney’s Office and other law enforcement agencies to put these criminal enterprises out of business.”

“The United States Postal Inspection Service is dedicated to combating Jamaican foreign lottery scams across the U.S. and here in South Carolina. Those who attempt to utilize the U.S. Mails to prey on Americans, especially the elderly, are pursued to the fullest extent of the law by U.S. Postal Inspectors,Keith A. Fixel, Inspector in Charge of the Charlotte Division said. “Working alongside our law enforcement partners, this case is an example of agencies joining forces to protect the public and demonstrates the far reaching arm of law enforcement to identify those responsible and hold them accountable.”

Federal Wire Fraud, Mail Fraud Charges and Defense

The law broadly defines wire fraud as devising or intending to devise a scheme to defraud others of money or property under false or fraudulent pretenses, representations or promises by means of electronic communications, or “wires.” Because they typically involve interstate matters, most wire fraud cases are considered federal crimes with convictions carrying heavy fines, prison sentences of up to 20 years, or both.

The United States Code criminalizes, “any scheme or artifice to defraud, or for obtaining money or property by means of false or fraudulent pretenses” involving the U.S. Mail system.

The problem with an allegation of mail fraud is that each act committed in a post office of taking out or putting in a letter that furthers the scheme, is a distinct and separate violation.  Accordingly, with a mass mailing, hundreds of violations may have been committed.

To secure a conviction of mail fraud, the government must establish that you used the US Postal System “for the purpose of executing” a fraudulent scheme. To prove their case, the government only needs to prove that the mailing was incidental to an essential part of the scheme.

Transferring money to an offshore or international bank may be legitimate and legal transactions; however, transferring money to an offshore or international bank account to hide a crime can lead to serious federal criminal charges.

The Strom Law Fir Defends Against Mail and Wire Fraud Allegations

As a former U.S. Attorney, Pete Strom handled these types of criminal fraud cases, from RICO violations to mail fraud and bank fraud. If you have been charged with mail fraud contact the Strom Law Firm, LLC today for a free consultation to discuss the most effective defense to your case and how to avoid further personal and professional damage. We handle your case with utmost discretion, exploring every viable strategy to secure a most favorable outlook.